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Deutsche Bank boss Josef Ackermann is the latest executive to turn down a chance to be the top dog at Citigroup – a sign there could be more trouble at the country’s biggest bank.

Sources close to Citi, said Ackermann was contacted about two weeks ago by officials conducting the search to replace former CEO Chuck Prince, but he declined to put his hat in the ring.

The snub comes after John Thain, former head of the New York Stock Exchange, decided to take over at rival Merrill Lynch instead of going to Citi, sources said.

Treasury Secretary Hank Paulson has also been mentioned as a possible candidate but earlier this week he said he intends to stay in his current job through the end of President Bush’s term in office.

Citi has announced $10 billion to $13 billion in charges related to subprime mortgage investments and it could face billions more in losses from souring credit card and home loan problems. It also needs to address problems in risk management practices and upgrade its technology.

Robert Rubin, the former US Treasury secretary who joined Citigroup in 1999 as head of the executive committee, has stepped in as chairman, and Win Bischoff, the bank’s most senior European executive, took over as acting CEO.

Board member Dick Parsons is leading the search for Prince’s replacement. Sources said Rubin wants to name a CEO before Christmas.

The path seems to be clearing for Vikram Pandit, the head of Citi’s alternative investments unit, to emerge as the next CEO. Sources close to Citi said Pandit has been lobbying for the job and many employees already view him as running the day-to-day operations of the firm.

Another possible leader in the wings is Robert Willumstad, 62, the former president-COO of Citi who had been passed over for the top post and quit in 2005.

Yesterday, a top Citi executive, under questioning before members of the British Parliament, said recent losses on subprime bets have been greater than all the profits that Citi made on trading subprime-backed securities.

“Our losses greatly exceeded the profits we made in this field over several years,” said William Mills, Citi’s chief executive of the US bank’s markets and banking division in Europe.

Several analysts also downgraded Citi yesterday citing continued problems in the credit markets.